Telstra tipped to offload its Foxtel stake as Nine buys 9.9% of Southern Cross Austereo

March 18, 2016 9:20

The consolidation of Australian media appears to be gathering momentum with Nine Network buying nearly 10% of Southern Cross Austereo and Telstra hotly tipped to sell its 50% stake in Foxtel.

Screen Shot 2016-03-18 at 8.50.03 am Speculation around Telstra’s move to sell out of the pay-TV operator emerged on the same day that Foxtel CEO Richard Freudenstein stepped down and was replaced by News Corp CEO Peter Tonagh.

The Australian Financial Review reports Telstra is considering a $4.5bn initial public offering (IPO) or sale of its 50% stake to fellow shareholder News Corp Australia.

Mumbrella understands one scenario might see News Corp fold-in Fox Sports before also moving to IPO.

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Nic Christensen

Nic Christensen worked for Mumbrella from 2013 to 2016, in roles including deputy editor and media & technology editor. He is former media writer for The Australian and has also worked as a reporter for The Daily Telegraph and senior producer for Radio 2GB.

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2 COMMENTS

Blutack 18 Mar 16

So even Telstra realise that Foxtel has peaked and it’s all downhill from here. For their sake lets hope they sell before the start of the next EPL season and that subscriber exodus.

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Holy moly 19 Mar 16

An IPO seems an odd choice when everything points to these companies struggling to maintain revenue amid the move to digital and away from subscription TV services.

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